The Finance Ministry said on Thursday that the first Serbian state bonds indexed in Euro had been successfully issued on the international capital market, adding that the total value of the issue was one billion Euro.
The bonds fall due in 2029 and will be listed on the London Stock Exchange to allow the early redemption of state bonds indexed in US Dollars. The statement said that this will bring savings of more than 3.8 billion Dinars in interest alone.
It added that Finance Minister Sinisa Mali headed a ministry and National Bank of Serbia (NBS) delegation which met with investors in Boston, New York, Frankfurt and London and started taking offers on June 19 following those meetings.
A total demand of 6.4 billion Euro has come from respectable global funds, insurance companies and banks, the statement said.
The minister is quoted as saying that the resuling issue has the lowest interest rate of 1.5 percent a year. Mali said that this is the lowest interest rate on bonds issued by Serbia. “The demand was six times greater than the offer. More than 300 investors from across the world showed interest which has never happened before and which confirms the success of the economic reforms and Serbia’s results in the world,” the minister is quoted as saying.
Mali said the attractiveness of the Serbian state bonds on the international financial market will have an effect on the favourable financing of the private sector.